Oil slides toward weekly loss as Iran uncertainty persists

August 28, 2026 (MLN): Oil prices declined on Friday, putting both major benchmarks on course to end a two-week winning run, even after prices settled higher in the previous session amid renewed uncertainty over U.S.-Iran relations.

Currently, Brent crude futures is up, 1.33%, at $88.19 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $0.84, or 1.02%, to $81.39 per barrel by [09:25 am] PST.

For the week, oil prices were headed for notable losses, with Brent down 5.3% and West Texas Intermediate (WTI) lower by 4.3%.

The decline came after a Wall Street Journal report indicated that U.S. President Donald Trump was unwilling to return to the terms of a previous agreement with Iran, adding further uncertainty to efforts aimed at reviving diplomatic engagement between Washington and Tehran.

According to people familiar with the matter, the Trump administration has repeatedly conveyed to mediators that it does not intend to revive the memorandum of understanding reached in June, creating additional hurdles for renewed negotiations, as reported by CNBC.

On Thursday, Washington also clarified that it was not currently engaged in direct talks with Iran, despite efforts by several countries to facilitate renewed diplomatic contact between the two sides.

Tensions intensified earlier in the week after the U.S. declared a fresh package of sanctions against Iran, describing them as the toughest measures imposed on the country.

Tehran condemned the move as hostile and inhumane, maintaining that the sanctions had failed to achieve their intended impact.

Meanwhile, geopolitical risks remained elevated following Russia's warning that it could target British military assets within or beyond Ukraine in response to Kyiv's use of British-supplied long-range cruise missiles against Russian territory.

However, Trump sought to ease concerns over a wider conflict, stating that Russian President Vladimir Putin would not launch an attack on any NATO member.

He also played down reports that CIA Director John Ratcliffe had recently cautioned Russian officials against such a move.

Britain, one of NATO's founding members, remains directly involved in the escalating tensions surrounding the war in Ukraine.

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